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author's profile photo Former Member
Former Member

Reduce useful life of asset in Old depreciation method and avoid catch up

Hi Friends,

What is the most effective and easy solution to reduce useful life of the asset during the fiscal year and avoid the catch up depreciation in the period in which the life is reduced. We would like to spread the depreciation over the remaining useful life of the asset instead of posting it in the period in which useful life is reduced. Any suggestions which have already been successfully implemented. We are not using New depreciation calculation engine so we need a solution for the old method of depreciation calculation.

Example is: Asset useful life is changed from 5 to 3 years and depreciation is already posted for 1 and half years. We want to change useful life in July, 2009 but don;t want the system to post catch up depreciation in this year but we want the system to post the catch depreciation over remaining useful life of teh asset which is one and half years.

Thanks and regards,

Pinky

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  • author's profile photo Former Member
    Former Member
    Posted on Jul 14, 2009 at 03:20 AM

    Hi

    you need to change customization of Depreciation key. In which you need to select the option" Smoothing"to post the revalued depreciation in the remaing periods of useful life.

    regards,

    satya

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  • author's profile photo Former Member
    Former Member
    Posted on Feb 02, 2012 at 11:39 AM

    Hi, but if you set the smoothing indicator it will calculate beyond useful life until end of fiscal year. How do you stop it posting after life has ended?

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